To Lend or Not to Lend | Self-Check Questions

To Lend or Not to Lend, that is the question. A very good question that sometimes an individual forgot to ask him/herself. I'm not a professional nor a Guru about economics but it's one of the important things I have learned from my father.

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Based on my experience, this help me to control my spending habit. I thought that only big business or company needs management till I start my own humble store, it all change. It's not easy to operate even a small sari-sari store. That's what I also learned. Even it's small you have to consider many things, how to manage, budget your capital and how to gain profit, etc. 

There are times, that you'll be lack of financial resources for your store and financial institution maybe the first solution comes to your mind. Much possible that when you go outside, you can see another solution to your financial problem. I'm talking about the "Bumbay" that offers installment appliances, bedsheet and also cash. They also personaly go at your doorstep or your store to ask you If you want to lend money for your store.

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Lending Money becomes more tempting specially when you need it most. So, these are what I always ask for my self If I feel the temptation of money Lending. This can be your self-check question also.



The First question is what the title of this post. This correspond to "Do I need to Lend or Not"? Of course If you need it badly and this is the only way you can do to solve your financial problem on your store then go. I underlined the only way because it means that If you can do something not to fall on lending scenario then maybe you can stop and just try to solve it the other way or option.

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The Second question is "Why do I need to Lend"? This question was really essential to define your purpose of lending. Actually, It's also applicable to everyone not only to store owner. It's not when a gadget sale or whatever sale comes out, lending would also comes to your mind. With your proper budgeting and managing, you can escape in the hands of money lending.You have to think twice or even thrice If you really need to lend.


The Third question is "Can I comply or paid on their payment schemes on time?" This was also important question because If you cannot paid on time of course It can cause you trouble in the future. This problem is one of the common mistake of some people in the eagerness to lend. You have to check if your store profit capability or does it have an excess profit to pay the money you lend. Many Filipino entrepreneurs fall in a scenario where they have so many debts and they lend to another to pay for the previous debts until their store turns to zero. Thus, money lending can be your nightmare If you can't manage to pay it right.


Those 3 simple questions might help you determine if it's the right time to consider lending. I'm not saying that lending was bad. Actually, it can be a great solution to your financial problems and future plans for your store if you can deal on it the right way.